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<br />-38- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />D. Pension Costs <br /> <br />GERF Pension Costs <br /> <br />At December 31, 2020, the City reported a liability of $1,444,905 for its proportionate share of the <br />GERF’s net pension liability. The City’s net pension liability reflected a reduction, due to the state of <br />Minnesota’s contribution of $16.0 million. The state of Minnesota is considered a nonemployer <br />contributing entity and the state’s contribution meets the definition of a special funding situation. The <br />net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate <br />the net pension liability was determined by an actuarial valuation as of that date. The City’s <br />proportion of the net pension liability was based on the City’s contributions received by the PERA <br />during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, <br />2020, relative to the total employer contributions received from all of the PERA ’s participating <br />employers. The City’s proportionate share was 0.0241 percent at the end of the measurement period <br />and 0.0218 percent for the beginning of the period. <br /> <br />The amount recognized by the City as its proportionate share of the net pension liability, the direct <br />aid, and total portion of the net pension liability that was associated with the City were as follows: <br /> <br />City’s proportionate share of the net pension liability 1,444,905$ <br />State’s proportionate share of the net pension liability <br /> associated with the City 44,478$ <br /> <br />For the year ended December 31, 2020, the City recognized pension expense of $10,949 for its <br />proportionate share of the GERF’s pension expense. In addition, the City recognized an additional <br />$3,871 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s <br />contribution of $16.0 million to the GERF. <br /> <br />At December 31, 2020, the City reported its proportionate share of the GERF’s deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences between expected and actual economic experience 11,917$ 5,467$ <br />Changes in actuarial assumptions – 50,679 <br />Difference between projected and actual investment earnings 32,655 – <br />Changes in proportion 95,370 19,152 <br />Contributions paid to the PERA subsequent to the <br /> measurement date 67,721 – <br />Total 207,663$ 75,298$ <br />